Zepto, the quick commerce startup, has postponed its initial public offering (IPO) and now aims to list between February and May 2027. The company plans to raise $105 million in a pre-IPO funding round from domestic and international investors to strengthen its balance sheet before reattempting the listing. This update was shared by CEO Aadit Palicha during a recent town hall meeting, according to inc42.com.
The decision to delay the IPO follows resistance from institutional investors who have significantly downgraded Zepto's valuation to between $2.5 billion and $3 billion, compared to $7 billion in 2025. The startup intends to use the fresh capital to reduce cash burn, optimize its network of dark stores, and align its valuation with investor expectations. The Securities and Exchange Board of India (SEBI) has granted an extended window for the IPO approval, valid until November 2027, allowing Zepto to update its draft red herring prospectus (DRHP) with newer financials.
Zepto's financials reveal a challenging path despite revenue growth. The company nearly doubled its operating revenue to ₹22,624 crore in fiscal year 2026, but its net loss widened to ₹5,095 crore. The quick commerce sector remains fiercely competitive, requiring heavy capital infusion to sustain operations and growth. The valuation cut reflects investor caution over Zepto's high cash burn amid intense market rivalry.
Zepto's next major milestone will be the pre-IPO funding round, expected to close within the extended SEBI approval window. The company’s updated DRHP filing will incorporate the latest financials ahead of its planned IPO between February and May 2027, as confirmed by CEO Aadit Palicha at the town hall.